Tesla ramps up plans to enter the Indian market with an affordable EV line-up.
EV giant Tesla is progressing on its India entry plans with reports of stepping up localized production efforts. Sources suggest it has begun manufacturing right-hand drive vehicles at its Berlin plant, likely in preparation for the India launch expected later this year.
Additionally, Tesla is scouting potential sites to set up local manufacturing facilities. Given their proximity to ports, states like Gujarat, Maharashtra, and Tamil Nadu are being considered for the plant. Recent policy reforms promote domestic EV manufacturing through incentives contingent on investment timelines.
Tesla is also actively working on an affordable EV model for the Asian market. Slated to be a compact two-door offering, it is expected to debut in Germany before hitting India. The automaker initially aims to produce this at Giga Berlin and its Indian facility.
Estimates indicate an over $3 billion investment in the budget EV, with partners contributing $10 billion extra for vendor development. With production capacity ramp-up and supply chain localization, Tesla wants to penetrate an emerging sector in India.
Industry observers say the strategic commitments underscore Tesla’s long-term vision for the South Asian market. Its market entry could galvanize EV uptake in India through competitive offerings and technological disruption. This promises to generate economic opportunities and green jobs across manufacturing ecosystems.
